Reply to Can 29yr old live off $1.5 million w/working?

Forum Index » Money and Finances

Reply to "Can 29yr old live off $1.5 million w/working?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This board truly has no clue what the lifestyle of the average American is like.

Of course he can retire with 1.5mil and a paid off house!  Of course it’s possible to squander it, but it’s also possible to live a nice, quiet, fulfilling life.[/quote]

If he lives 60 more years, that's only 25k a year or basically 2k/month, in today's money.  With this money he has to pay taxes, insurance, and upkeep on a home, plus maintenance and eventual replacement on a modest car. Plus food, clothing and healthcare. Even for a "nice, quiet, fulfilling life." I think your confidence is unfounded. [/quote]

Never understand why DCUM people can’t understand buying bonds.

You buy $1.5MM of risk free bonds at 5% and you make $75k per year without touching the principal.

Many people can live on that per year.[/quote]

This.

Once people understand this, it's like a lightbulb going off. [/quote]

The average DCUM type doesn’t understand that 75K is the current MEDIAN American *household* income.  Bunch of book smart idiots acting like 75K is poverty wages for a single man WITHOUT A MORTGAGE…[/quote]

The plan you think is so tractable erodes away every year with inflation. In 60 years, that $75K will be the equivalent of $13K today. Nowhere near the median HHI. Instead, OP would find their quality of life significantly degraded after just 10 years, thereby increasing withdrawals and cutting into principal. Maintaining a $75K lifestyle in today’s dollars would last until OP reaches 50 years old. Then…all money is gone and no pension or SS to cover expenses.[/quote]

You DO realize that people manage to save and even invest on a HHI of 75K, don’t you?  Think about it.[/quote]

But their HHI keeps pace with inflation. [/quote]

Agreed. Plus, 75K on 1.5M is not a realistic number. [/quote]

Wait, are you trying to tell me that no risk 5% bonds won't be available forever and that it's not a good idea to base your entire financial future on the assumption that they will be?

[/quote]

Again, put all the money into a [b]30-year treasury that as of today yields 4.74%[/b].  That's about as close to 30-years of no-risk as anyone can ever get.

So, you can at least base your next 30 years on that assumption.[/quote]

I'm going to show my lack of knowledge about bonds. But, are you referring to treasury bonds, bills, TIPS?? Also, is the rate of 4.75 inflation adjusted? Or will it stay 4.75 for the life of the bond/bill/TIPS?? Thanks.[/quote]

Treasury bond.  You can buy TIPS, which gives you some inflation hedge.  Not sure what those are yielding.  However the yield can also drop to something quite low if you have little to no inflation (basically 2008-2020).

The 4.75 was for the life of the bond.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics